Determining HCE's for first year of a new company

[Guest Richard Scheer]

I'm sure this has been asked before, but I can't find it.

If a brand new company starts 1/1/00 and has a plan effective 1/1/00 are there any HCE's in the Plan for the first plan year (Note that there are no owners participating in the Plan).

There are several officers (not owners) earning >80,000 in 2000. However, for the prio year (1999) there were no employees.

Are all participants considered NHCE's for 2000?

[Richard Anderson]

If there are no 5% owners and there was no compensation in the prior year because the employer did not exist, then you have no HCEs for the first year.

Your analysis is correct, all participants in 2000 are NHCEs.